Self employed LLC

I am looking to work as an independent contractor (1099) for a health clinic and some of the people established LLCs and some don’t – I am wondering if this is something I should look into and how it could help tax wise.

They provide office space, supplies (except laptop), and the billing service. I would be 3 days in office and 2 from home. The commute is about 20min each way.

Just wondering if the work/cost of an LLC would be worth it given it doesn’t seem like a very complicated setup. Figured some of you here are self employed.

i could be dead wrong here, but isnt the LLC a liability thing?????

glenn57 wrote:

i could be dead wrong here, but isnt the LLC a liability thing?????

It provides limited liability so that they can’t go after your personal assets if you are sued. It depends on the type of work whether this is a concern or not.

For taxes a single owner LLC can either be taxed as you would without an LLC, where all income is subject to SECA, or you can elect to be taxed as an S corp with you as an employee. In the S corp case only the wages paid to the employee have FICA taxes withheld and the rest is dividend income not subject to SECA. You should really talk to an actual tax person about this.

glenn57 wrote:

i could be dead wrong here, but isnt the LLC a liability thing?????

It’s mainly to separate business and personal from lawsuits and debts.

I’ve got an LLC, it literally took me 20 minutes and like $50 to create it a couple years ago on the MN Secretary of State website. Create a TaxID, get insurance, have an attorney create or read the contract, and have an accountant that at least knows small business. If you’re in the Rochester area I can point you to a good accountant I really like.

I will be talking to a tax person or lawyer – I am mostly just trying to gather some preliminary insight as to if forming one it is worth it.

My professional liability insurance is the main risk safeguard. My understanding is that the LLC is useful because the clinic pays the LLC, and then the LLC can distribute money (my salary, expenses, etc.) in ways that are tax advantageous.

One of the guys I talked to said that he is able to deduct enough expenses already and that its not worth his time to go the LLC route.

Again, I’m just fishing for some info as I enter something new to me. I’m located in the cities.

SAme as Munchy here – I am an independent contractor for my work.
Talk to a Tax Person and do it right.
Costs almost nothing and takes VEry little time

For tax advantageous items, just having a 1099 you can write off your mileage, home office, cell phone, internet, computer, anything that can be associated with business. I’m not sure if having an LLC would change much other than separating that stuff from personal.

TALK TO A CPA!!!